A Namibian court has ordered Zimbabwean banker Enock Kamushinda to pay liabilities amounting to N$1.5 Million for his failed bank SME Bank.
This was reportedly after approximately N$200 million of deposits made into SME bank vanished amid allegations that they were deposited into South Africa’s Venda Building Society (VBS) Mutual Bank, which is under curatorship for now.
Liquidators reportedly went after Kamushinda and they wanted him and 2 other financial institutions to pay N$1.5 Billion:
Liquidators were seeking an order for Kamushinda and the two financial institutions to pay individually or severally more than N$1,5 billion.
In addition, they sought an order compelling the minority shareholders Metropolitan Bank of Zimbabwe Limited and World Eagle Investments to pay an amount of N$121,4 million and N$20,2 million respectively for the outstanding payment on their shareholding.
Namibian High Court Judge presiding on the matter Collins Parker yesterday ruled that Kamushinda and other minority shareholders were jointly liable for the liabilities of the bank’s contracted debt.
According to the publication, Kamushinda had argued that:
He and the two financial institutions could not be held liable for the demise of the bank as the money, which was intended for SME Bank from the government, through the Namibia Financing Trust, never reached the institution.
His lawyers further argued that if Kamushinda were to be held liable then all board members including those who were serving on behalf of the government should be held accountable too.